DIY: When renovation is purely for profit
RENOVATING property is now a legitimate way to follow your passion while earning through profit.
Long before 'tricking and flicking' became a national obsession, a 21-year-old Cherie Barber bought her first house in Sydney. Facing a six-lane highway, the property was a disastrous decision and Cherie was driven to sell as quickly as possible.
That first renovation earned Cherie $40,000 in profit and she was hooked and on her way to becoming a renovation expert and TV personality, with more than 70 renovations under her belt.
Here are Cherie's Fabulous Five renovation tips:
1. The kitchen is the single most important room to invest in. I have an exact formula that has worked for me, where I allow 2% of the total value of the property to be invested in a full kitchen renovation.
2. Next on the bang for buck list is the bathroom. This is also worth spending 2% of the total value of your property. But be clever. For instance, ensure all the plumbing is on one wall, and you can do things like use tile paint instead of replacing the old tiling.
3. If you do have money to spend on the bedrooms, spend it on the master bedroom. This can be done economically by painting, wallpapering or hanging pendant lights either side of the bed.
4. If you can afford it, allocate 4% of property value on the front of the property as first impressions count! If you can't invest, then clear clutter, trim anything overgrown and paint where needed.
5. The part of your property you need to spend the least money on is the backyard. Here you can simply tidy, trim and refresh by painting any surfaces.
Renovating for Profit provides education and workshops to budding Australian renovators.